Want to grow your money without the risk? Fixed deposits are a great low-risk instrument. Just do research on the best interest rates, park your money in a fixed deposit of choice and wait for it to grow. Let’s check out Hong Leong fixed deposit promotions for January 2020 and see how they measure up against others in the market.
Hong Leong Finance fixed deposit rates (Jan 2020)
Every month, Hong Leong Finance (and most banks) refresh their fixed deposit promotions. Here are January 2020’s rates:
|Deposit amount||Hong Leong Finance promotional interest rate|
|$20,000 to $49,999||1.40% p.a. (3 months)||1.63% p.a. (9 months)||1.65% p.a. (12 months)|
|$50,000 to $99,999||1.45% p.a. (3 months)||1.65% p.a. (6 months)||1.68% p.a. (12 months)|
Hong Leong Finance also offers higher rates (up to 1.70% p.a.), but that’s for deposits of at least $100,000. If you had that kind of cash, there are probably better places to put it. (Plus, we’re plebs.)
Since it’s the Chinese New Year period, Hong Leong Finance also rolled out a festive “Double Happiness Golden Rat Fixed Deposit Promotion”:
|Deposit amount||Hong Leong Finance festive promotional interest rate|
|$50,000 and above||1.52% p.a. (3 + 3 months)|
Hong Leong Finance fixed deposit promotions
Currently, there are 2 types of Hong Leong Finance fixed deposit promotions. One is the 3-, 9- and 13-month Golden Rat fixed deposit promotion, and the other is the 3+3-month Golden Rat fixed deposit promotion.
Hong Leong Finance Golden Rat fixed deposit promotion
The first one is straightforward, and offers better rates. If you deposit between $20,000 to $49,999 for 12 months, you earn 1.65% p.a., which is decent.
Can’t commit to a year? There are also promotions for shorter tenures, but the lowest you should go is 9 months for 1.63% p.a. interest. If you go for the 3-month contract, the interest is a pathetic 1.40% p.a.
For those who have at least 50 grand, the interest rates are bumped up slightly. You can earn up to 1.68% p.a. if you deposit the cash for a year, or 1.65% p.a. for 9 months.
Considering the market-high this month is 1.80% p.a. (offered by CIMB) and that most banks are in the 1.65% to 1.70% p.a. range, this isn’t too bad.
Hong Leong Finance 3+3 Golden Rat fixed deposit promotion
The next promotion is less attractive and quite a bit more complicated.
Hong Leong Finance recently introduced this odd X+X month promotion mechanic, (I feel) which does nothing much but confuse customers. Last month they had 3+3, 4+4 and 5+5 promos, but for the CNY festive promo, there’s only a 3+3 package.
Basically, instead of a simple 3-month tenure, the promotion requires you do a 3+3 = 6-month tenure whereby your fixed deposit will be automatically renewed at the 3-month mark, at the same promotional interest rate.
You’re not allowed to withdraw any funds from the first cycle, so the commitment is effectively 6 months.
Anyway, the rate is a disappointing 1.52% p.a., which is like… board rate standard. Buay sai lah.
To enjoy the best Hong Leong Finance fixed deposit rates, deposit at least $50,000 for 12 months.
Hong Leong Finance’s Golden Rat fixed deposit rates, while decent, are not the best you can find in Singapore. However, they’re still way better than, say, DBS fixed deposits.
The only thing is that you’ll need quite a bit of spare cash to dump in there to benefit from the highest rate of 1.68% p.a.
The minimum deposit amount of $50,000 is considered on the high side with others offering similar (or better) rates for deposits of $20,000 or less.
Although no expiry date is stated, promotional fixed deposit rates typically last for a month before they are revised or renewed.
Hong Leong vs Maybank, ICBC and CIMB fixed deposit promotions
Hong Leong’s best promotional interest rate is 1.68% p.a. if you deposit at least $50,000 for 12 months.
Assuming you can afford to do that, you can actually get better rates elsewhere — specifically CIMB and HSBC. Both banks offer better rates with lower minimum deposit requirements:
CIMB fixed deposit promotion (Jan 2020)
- Interest rate: 1.80% p.a.
- Conditions: Minimum $10,000 deposit for 12 months. Applies to online applications only.
- Validity: until 31 Jan 2020
HSBC fixed deposit promotion (Jan 2020)
- Interest rate: 1.75% p.a.
- Conditions: Minimum $30,000 deposit for 6 months.
- Validity: until 29 Feb 2020.
CIMB’s 1.80% p.a. is the highest this month and I like that you only need to commit above $10,000.
For something shorter, go for HSBC. The promotion offers 1.75% p.a. for half the lock-in period, and a slightly lower minimum deposit of $30,000.
Would it be better to park your money in a high interest savings account instead?
When deciding if you should park your money in a fixed deposit, you should also check out high interest savings accounts as the most generous can sometimes offer even higher interest rates.
Some accounts to check out include the OCBC 360 account, which offers up to 3.45% interest if you’re able to satisfy their many requirements, as well as the UOB One Account, which offers interest of up to 1.50%, again subject to being able to satisfy their requirements.
Do note, however, that many of these savings accounts have a bonus interest cap, where if your deposit exceeds a limit of anywhere between $50,000 and $100,000 you won’t earn anymore bonus interest.
So if you have that much money casually lying around then Hong Leong Fixed Deposits may actually be a better choice.
Want to find out more about the best high interest savings accounts in Singapore? Read Your Savings Account Sucks, Here Are Some That Don’t on MoneySmart.
Do you currently put your money in fixed deposits? Share your recommendations in the comments!